Strategic Advice / Exit Strategies
The commercial property world has changed dramatically over the last few years and gone are the days of 25 year lease terms.
A tough economic climate has led to much shorter lease terms and also the common inclusion of ‘break clauses’ within leases, such as allowing the lease to be brought to an end early – often only if certain criteria are met.
A contentious and hot topic in the commercial property world are ‘material’ and ‘absolute’ compliance break clauses which can be very difficult for the tenant to achieve and it is not un-common for Landlords to try to frustrate these breaks in an attempt to keep the tenant rather than losing the rental income.
As building surveyors, we provide advice to both Landlords and Tenants regarding the repairing obligations etc. within the lease. For tenants this can be advising on the most cost-effective way of meeting their obligations and for landlords it can be maximising their position to ensure they get back a building in good order or cash settlement in lieu.
Strategic advice will assist greatly in establishing the strength of a party’s position subsequent and negotiations whether it be a new lease on different terms, or as often occurs a smaller demise.
For strategic and commercial property management services, contact us.